DOW JONES NEWSWIRES
Pepsi Bottling Group Inc. (PBG) raised its second-quarter and
full-year earnings forecasts, citing improved soda results in the
U.S. and Canada, as well as easing commodities costs and
foreign-exchange volatility.
The increase likely will buttress the company's contention that
the $4.2 billion takeover offer from one-third owner PepsiCo Inc.
(PEP) is a low-ball bid.
Pepsi Bottling raised its second-quarter profit estimate by 5
cents to a range of 70 cents to 74 cents a share and increased its
2009 forecast by 10 cents to between $2.30 and $2.40.
Chairman and Chief Executive Eric Foss said, "PBG's strong start
to the year has continued in the second quarter." He cited
"improving fundamentals" in the U.S. and Canada, coupled with the
company's global pricing strategy and cost-cutting measures.
Weakening carbonated beverage sales in the U.S. have posed a
challenge for Pepsi and rival Coca-Cola Co. (KO), with both
companies turning overseas markets and to alternative drinks such
as teas, bottled juices and water for growth in recent years.
Both companies have been hurt in recent quarter by the
strengthening dollar and jostled by volatile commodities costs.
Pepsi Bottling closed at $33.21 on Monday and didn't trade
premarket. The stock has lost nearly half its value in the past
year, though it has more than doubled since hitting an eight-year
low in November.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com